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CC interest rate ceiling from April 1
Interest rates on lending through credit cards will carry a ceiling of eight per cent more than the market rate in contrast to the present 24 per cent, Finance Minister Ravi Karunanayake said yesterday. This directive will be given in one of the three circulars to give effect to proposals announced in the interim budget on January 29 and clear the confusion over this, he said. The ceiling on the interest rates on lending through credit cards will come into effect from April 1.
The minister said the Central Bank’s supervision department would check whether commercial banks were adhering to the new directive.
The move came following complaints that banks were charging exorbitant interest rates of more than 20 per cent, he said. ‘’The interest rates have been so high due to wrong policies followed by the previous government. We are correcting the situation,” he said.
The other circulars relate to concessions given to senior citizens for their fixed deposits and regarding the waiver of interest for gold pawned for less than Rs. 200,000. He said since there had been confusion regarding the implementation of these decisions, the ministry was issuing circulars to clarify the position.